Explore the different options for borrowing money—from friends and family, to a bank loan, and lines of credit. Regardless of where you are going to raise money, it’s important to be prepared to share the details of how your business is going, and how you expect it to do post-borrowing.
- A truism for many businesses…is that things take twice as long…and cost three times as much…as you thought it would when you first set out.…So it's very possible that, at some stage in your business,…you'll need to borrow money.…First things first, if you need to borrow money,…make sure it's the business that borrows the money, not you.…No matter if it's a bank or a friend,…you need to make sure that…you're personally insulated from the debt.…If things go wrong, you need to know…that there's a line between you…and the debts that the business owes.…Also know that this strategy…only helps you if you're incorporated.…
Owners of sole proprietorships and partnerships…are personally liable for their business debts.…So if you're business is thinking…of borrowing a lot of money,…seriously consider incorporating.…And when you look at loans,…make sure you know not only…how much the loan will cost overall,…but, also, how much you'll have to pay out each month.…This depends on the interest rate of the loan…and the term of the loan.…
- Explain the advantages and disadvantages of different business and corporate structures.
- Determine cash flow using the concepts of revenue and expenses.
- Demonstrate knowledge of best practice fundamentals for business.
- Explain the importance of a cash reserve.
- Differentiate between the types of insurance and other protections a business should have.